Canadian Dollar Loses Ground on Wider Trade Deficit
Canadian dollar is heading lower today as a wider trade deficit takes its toll. It’s also not helping that risk appetite, in general, is lacking today.
Canada’s trade deficit of C$567 million is weighing on the loonie today, especially after March’s reported surplus was actually a C$3 million shortfall. The mistake, corrected by Statistics Canada along with the most recent figures, is weighing on the Canadian dollar, sending it down against its major counterparts.
Yesterday, the Canadian dollar saw a bit of a resurgence as manufacturing data in the United States indicated a slowdown, and speculation increased that the Federal Reserve will continue its easing program after all. The news weakened the greenback against many of its major counterparts.
Today, though, there is a bit of strength in the US dollar as Forex traders look for safe haven. Riskier assets, like the loonie, are heading lower today. Also weighing on the Canadian dollar is the fact that, once again oil prices are dropping. Oil is back below $93 a barrel, and that impacts the loonie, since oil is a major Canadian export.
At 14:59 GMT USD/CAD is up to 1.0344 from the open at 1.0277. EUR/CAD is up to 1.3521 from the open at 1.3439. GBP/CAD is up to 1.5822 from the open at 1.5744.
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Earlier News About the Canadian Dollar:
- Positive Fundamentals Did Not Help CAD This Week (2013-06-01)
- Canadian Dollar Advances as Current-Account Deficit Narrows (2013-05-30)
- Canadian Dollar Stronger After Carney's Last BoC Meeting (2013-05-29)
- Canadian Dollar Mixed Ahead of BoC Meeting (2013-05-28)
- Loonie Closes Lower as Commodities Decline (2013-05-24)